Trouble looms for Safaricom over Masoko launch

The communications regulator has opened up another dispute with mobile service provider Safaricom over its new Masoko e-commerce platform.

Communications Authority (CA) Director-General Francis Wangusi has expressed concern that the new service could be in contravention of Safaricom’s licensing terms.

“Operators can build the electronic platform that supports e-commerce as well as facilitate the financial payments. This is what I believe Safaricom have done and it is all within their license agreement. However, when it comes to the logistics of delivery of those services, they have no licence to do that since the only permit we have is a postal and courier one and to provide that service they will have to get a licence from us,” he said in an interview with The Standard.

Safaricom last week launched Masoko, an e-commerce platform modelled on Amazon, which allows consumers and vendors to create accounts and trade in a wide array of goods and services electronically.

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The telco has partnered with two service providers – Fargo Courier and Sendy – allowing customers to receive goods purchased on Masoko within 24-72 hours for those living in 100 locations of the delivery network.

In September the regulator revoked Sendy’s international courier licence, which prompted it to clarify that it is a technology platform and not a post and courier service provider.